Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment Income $ 3,150,000 990,000 240,000 60,000 295,000 199,000 240,000 249,000 519,500 200,000 $ 157,500 Problem 21-1A (Algo) Preparing and analyzing a flexible budget LO P1 Required: 1&2. Prepare flexible budgets at sales volumes of 14,000 and 16,000 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. Prepare a simple budgeted income statement if 18,000 units are sold. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Prepare flexible budgets at sales volumes of 14,000 and 16,000 units. PHOENIX COMPANY Flexible Budgets

Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-Office equipment Income $ 3,150,000 990,000 240,000 60,000 295,000 199,000 240,000 249,000 519,500 200,000 $ 157,500 Problem 21-1A (Algo) Preparing and analyzing a flexible budget LO P1 Required: 1&2. Prepare flexible budgets at sales volumes of 14,000 and 16,000 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,000 units. Prepare a simple budgeted income statement if 18,000 units are sold. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Prepare flexible budgets at sales volumes of 14,000 and 16,000 units. PHOENIX COMPANY Flexible Budgets

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please show calculation
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Gary Ltd. manufactures a product for which the budgeted capacity is 392,000 units per month. The following data is available for August 2019: Details Units Sales 320,000 Opening stock 60,000 Closing stock 160,000 Production 420,000 Cost Data Details $ Direct materials 55 Direct labour 22 Variable Production Overheads 41 Fixed administrative overheads were estimated at $ 600,000 while fixed selling overheads were estimated at $840,000. During the periods, the selling price per unit was $180 and Total Fixed Production Overheads were $5,880,000. Required: (a) Show the profit situation using Marginal costing principles (b) Show the profit situation using Absorption costing principles